Tag: Kentucky

Kentucky Single Family Housing USDA RHS Guaranteed Loan Program Update 2011


Single Family Housing Guaranteed Loan Program
May 26, 2011

Kentucky USDA / RHS Single Family Housing Guaranteed Loan Program

May 26, 2011

GUARANTEED LOAN FUNDING UPDATE:  HELP WANTED!
$24 BILLION DOLLARS ALLOCATED FOR GUARANTEED LOANS!

$24 billion dollars is available in Fiscal Year 2011 (through September 30, 2011) in the Single Family Housing Guaranteed Loan Program (SFHGLP).  To utilize these available funds, WE NEED YOUR HELP!

SERVE RURAL HOMEBUYERS!  In the past, funding shortages due to overwhelming volume and program demand may have prohibited some homebuyers from utilizing the SFHGLP.  Fiscal year 2011 will be different!  Congress responded to lender requests for more funding and delivered $24 billion for the current fiscal year!

LEND WITH CONFIDENCE!  Future Guaranteed Loan Funding Updates will continue to be released in order to keep our lending partners informed of available funding levels.
As of May 26, 2011:
TOTAL $ OBLIGATED:      $9.2 BILLION
TOTAL # LOANS:                 70,759

OVER $15 BILLION REMAINS TO
SERVE RURAL HOMEBUYERS!

Thank you for your support of the Single Family Housing Guaranteed Loan Program!

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Kentucky USDA and Rural Housing Changes May 1, 2013


CHANGES ARE COMING ……MAY 1, 2013!

 

PLEASE REVIEW THIS NOTICE TO MAKE SURE YOU ARE AWARE OF THE CHANGES.

 

Attached to this list serv is RD AN 4710. It contains new instructions for ratio waivers. A few key points have been highlighted below. Please read the complete AN prior to processing or underwriting loans to be submitted beginning May 1, 2013.

 

These guidelines only apply to manually underwritten loans, GUS “Refer”, and GUS “Refer with Caution” loans. These changes do not apply to GUS “Accept” loans or GUS “Accept” loans that require a “Full Documentation” loan submission.

 

  • Ratio waivers will only be granted for loans that the ratios do NOT exceed 32/44, and
  • The credit score of all applicant(s) must be 680 or greater, and
  • At least one of the acceptable compensating factors that is listed in the AN is identified and supporting documentation is provided to USDA Rural Development.
  • There will be NO exceptions to the defined ratio thresholds and minimum credit score requirements.

 

If a loan is submitted that does not meet the requirements listed above, it will be automatically rejected. Please ensure the ratios are calculated correctly and submit the required evidence with the loan submission.

 

PLEASE REMEMBER THAT WE CANNOT ACCOMMODATE RUSH REQUESTS.

 

Each loan specialist has the turn times listed on their out of office reply. If you know that your loan has not been in our office for the amount of time listed, please help us by not calling until that time has passed. If possible, please discourage borrowers, sellers, realtors, brokers, mothers, (you probably think we are kidding) aunts, and uncles, from calling and asking about loan status. It slows us down considerably. We would like to be able to turn the loans around faster and ask for your help.

 

There are a couple of other items that will help with getting a conditional commitment faster.

 

  • Please ensure that the complete1980-21 is revision 2/13. We are still getting the second page from an old version of the form.

 

 

  • Please include a copy of the HUD-1 if there has been a recently sold residence.
  • Please include a copy of the non-signing adult household member letter if there is no income.
  • Please include a payoff sheet for a refinance loan.
  • Due to the length of our turn times, if you are aware that the interest rate or loan amount will be changing within the 15 days that the loan is in our office, please let us know so that we can make the changes prior to issuing a conditional commitment and avoid processing the loan twice.

 

Thanks so much for your patience and help with these matters.

 

We look forward to working with you and appreciate the work you do to assist families become successful homeowners in rural Utah.

 

Sincerely,

 

Utah SFH Guaranteed Loan Program

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Swimming Pools and USDA loans


Swimming Pools for Kentucky USDA and RHS Rural Housing Loans Guidelines 2013

 

If you are purchasing a home using USDA financing, and the property has a swimming pool, there a specific guidelines that must be followed by the appraiser with regards to how the final appraised value is determined.

USDA will finance properties with pools, but they distinguish between above ground and in-ground pools.  If a pool or jacuzzi is above ground, there is no issue.  However, if the pool is an in-ground pool, then the underwriter will deduct the value of the pool from the final appraised value.

For example, if a property has a sales price of $200,000, and has an in-gound pool, the appraiser must find other comparable sales with swimming pools like the subject property.  If he or she determines the value of the pool is $10,000, then this amount will be deducted from the final appraised value of the property.  If the appraiser determines the value of the property is $210,000, then the USDA underwriter will reduce the value by the amount of the pool ($10,000) and the final value used for loan purposes will be $200,000.  If the appraiser determines the final value is at sales price, or $200,000 in this example, then the USDA underwriter will reduce the appraisal down to $190,000, and this is the value that will determine the final loan amount available to the borrower.

So as you can see, if the property appraises high enough, the deduction for the pool wont be an issue, as the appraisal will still be at or above the sales price.  However, if the property appraises at or near the sales price, the buyer could have an issue with a “low appraisal” after the value of the pool is deducted, even though the actual appraised value came in at or around the sales price.

When getting a USDA loan on a property with an in-ground pool, make sure the lender, agents and appraiser are aware of this guideline going in so they can try to address any potential issues surrounding the USDA guideline.

Related Articles

usdahomeloan's avatarUSDA Home Loan Information

If you are purchasing a home using USDA financing, and the property has a swimming pool, there a specific guidelines that must be followed by the appraiser with regards to how the final appraised value is determined.

USDA will finance properties with pools, but they distinguish between above ground and in-ground pools.  If a pool or jacuzzi is above ground, there is no issue.  However, if the pool is an in-ground pool, then the underwriter will deduct the value of the pool from the final appraised value.

For example, if a property has a sales price of $200,000, and has an in-gound pool, the appraiser must find other comparable sales with swimming pools like the subject property.  If he or she determines the value of the pool is $10,000, then this amount will be deducted from the final appraised value of the property.  If the appraiser determines the value of…

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Kentucky Mortgage USDA Loans Zero Down Home Loans Still Exist


 

 

Kentucky Mortgage Usda Loan Zero Down Home Loans Still Exist



Your income and your monthly expenses. Standard debt-to-income ratios are 29/41 for USDA Loans. These ratios may be exceeded with compensation factors.

Your credit history (this is important, but USDAs credit standards are flexible). A FICO score of 620 or above is required for all loans

Your overall pattern rather than to individual problems you may have had.

To be eligible for an USDA mortgage, your monthly housing costs (mortgage principal and interest, property taxes and insurance) must meet a specified percentage of your gross monthly income (29% ratio). Your credit background will be fairly considered. At least a 620 FICO credit score is required to obtain an USDA approval through Lending. You must also have enough income to pay your housing costs plus all additional monthly debt (41% ratio). These percentages may be exceeded with compensating factors. Applicants for loans may have an income of up to 115% of the median income for the area. Maximum USDA Loan income limits for your area can be found at here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.



Can I get an USDA Mortgage Loan after bankruptcy?

Criteria for USDA loan approvals state that if you have been discharged from a Chapter 7 bankruptcy for three years or more, you are eligible to apply for an USDA mortgage. If you are in a Chapter 13 bankruptcy and have made all court approved payments on time and as agreed for at least one year, you are also eligible to make an Kentucky USDA loan application.



What are the USDA Down Payment Requirements?

USDA Mortgages have no down payment requirement. 


What is the maximum amount that I can borrow?

The maximum amount for an Kentucky USDA Mortgage Loans are determined by:



Maximum loan amount: The is no set maximum loan amount allowed for an USDA Mortgage. Instead, your debt-to-income ratios will dictate how much home your can afford (29/41 ratios). Additionally, your total household monthly income must be within USDA allowed maximum income limits for your area. Maximum USDA Loan income limits for your area can be found at here.



Maximum financing: The maximum USDA Mortgage amount will be 100% of the appraised value of the home.



What kinds of loans does USDA offer?


Fixed rate loans – All USDA loans are fixed-rate mortgages. In a fixed rate mortgage, your interest rate stays the same during the whole loan period, normally 30 years. The advantage of a fixed-rate mortgage is that you always know exactly how much your monthly payment will be, and you can plan for it.


What is Considered a Rural Area by the USDA?

Rural areas include open country and places with population of 10,000 or less andunder certain conditionstowns and cities. There is an automated rural area eligibility calculator at:http://eligibility.sc.egov.usda.gov.


Kentucky USDA Loans

What are USDA Home Loans?

USDA stands for United States Department of Agriculture. A USDA Mortgage provides a low-cost insured home mortgage loan that suits a variety of options. A USDA mortgage is likely the best home loan option if you want to purchase a home with no down payment. If youre unsure about your credit rating, or have concerns about a down payment when youre doing a home loan comparison, ENG Lendings USDA Rural Mortgage Loans can give you piece of mind with zero-down, super low closing costs and no monthly mortgage insurance.


What Types of Loans does USDA offer in Kentucky?

Currently, there are two kinds of USDA Home Loans available in Kentucky for single family households:


USDA Guaranteed Rural Housing Loans

USDA Guaranteed Home Mortgage Loans are the most common type of USDA Loanin Kentucky and allow for higher income limits and 100% financing for home purchases. USDA Guaranteed Loan applicants may have an income of up to 115% of the median household income for the area. Area income limits for this program can be viewed here. All USDA Guaranteed Loans carry 30 year terms and are set at a fixed rate.


USDA Direct Rural Housing Loans

USDA Direct Housing Loans are less common than USDA Guaranteed Loans and are only available for low and very low income households to obtain homeownership, as defined by the USDA. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. Click here to see area income limits for this program.

What factors determine if I am eligible for a USDA Loan in Kentucky?

To be eligible for A USDA Rural Loan in Kentucky, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income (29% ratio). Your credit background will be fairly considered. A 620 FICO credit score is required to obtain a USDA Rural Housing Loan approval through ENG Lending. You must also have enough income to pay your housing costs plus all additional monthly debt (41% ratio). These ratios can be exceeded somewhat with compensating factors. Applicants for loans may have an income of up to 115% of the median income for the area. Maximum USDA Guaranteed Loan income limits for your area can be found at here. Maximum USDA Direct Loan income limits for your area can be found at here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.


What is the maximum amount that I can borrow?

The maximum amount for an USDA home loan is determined by:

Maximum Loan Amount: The is no set maximum loan amount allowed for USDA Rural Home Loans. Instead, your debt-to-income ratios will dictate how much home your can afford (29/41 ratios). Additionally, your total household monthly income must be within USDA allowed maximum income limits for your area. Maximum USDA Guaranteed Loan income limits for your area can be found at here.


Maximum financing: The maximum USDA Rural Development Loan amount is 102% of the appraised value of the home (100% plus the 2% USDA RD Loan guarantee fee).

Kentucky Mortgage Usda Loan Zero Down Home Loans Still Exist



How much money will I need for the down payment and closing costs?

USDA Rural Development Mortgage Loans require no down payment and they allow for the closing costs to be included in the loan amount (appraisal permitting).



What property types are allowed for USDA Rural Loan Mortgages?

While USDA Mortgage Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and single family residences.

Additional offers from other lenders.



Kentucky USDA Loan Adjusted Maximum Income Limits by County

everything You Need To Know About USDA-Rural Home Loans



I have put together valuable information and tools to help you gather all of the information that you need to make the most informed decision when shopping for a mortgage. Sometimes the USDA Home Loan Program is not the best option for a Zero Down Purchase. .


Sometimes good credit and a down payment are not enough to qualify for a home loan at a commercial lending institution, such as a bank, savings and loan or with a mortgage broker. That is why the U.S. Department of Housing and Urban Development has provided a loan program that allows more rural families and individuals to be eligible to become homeowners with the help of a USDA guaranteed home loan. The USDA loan program allows:

– 620 min credit score

– Up to 6% seller contributions

– No PMI (private mortgage insurance)

– Zero Down


However, the USDA-RD loan program DOES have 2 main qualifying features:

(1) Eligibility is region or location specific CLICK HERE http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp&NavKey=property@11 to check if an address is USDA Eligible.

(2) Eligibility is income specific. Qualifying income is based on household members and a max income cap. CLICK HERE http://eligibility.sc.egov.usda.gov/eligibility/incomeEligibilityAction.do?pageAction=state&NavKey=income@11 to see if you qualify under the max income cap.

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